Telkom disposes of media division

South African fixed line operator Telkom has sold its 75% shareholding in Telkom Media, a company that operates satellite services, to Shenzhen Media South Africa Ltd, for a nominal sum.

The sale was made under an accelerated process for Telkom Media shareholder’s equity and loan accounts in an effort to prevent the unit from being closed. Shenzhen Media agreed to change the name of the unit within 30 days, Telkom said in a statement.

The sale came about after Telkom sent out invitations to parties that had previously expressed an interest in buying the unit, although Telkom only considered unconditional offers “backed with adequate financial guarantees,” according to Naas Fourie, Telkom’s chief of strategy.

Telkom originally announced that it wanted to “significantly reduce” its shareholding in Telkom Media in March 2008, and had even considered winding the company up rather than searching for a buyer last year.

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